Investing in the Indonesia Tourism Industry Opportunities on Trikora Coast

Investing in the Indonesia Tourism Industry: Opportunities on Trikora Coast

  • InCorp Editorial Team
  • 16 May 2023
  • 4 minute reading time

Indonesia’s Tourism Industry Landscape

Indonesia has a wide range of tourist activities and attractions. Considering Indonesia is an archipelagic country, it is blessed with incredible mountains and beautiful coastlines. The natural attractions in Indonesia are something absolutely everyone can enjoy. If nature is not something that brings you joy, Indonesia is also known for culture and fine arts with large festivals, events, and sites.

The government continually strives to make Indonesia a world-class tourist destination. Realizing that the Indonesian tourism industry can continue to be developed, the Tourism and Creative Economy Ministry has identified five priority destinations to promote and has allocated a significant portion of the state budget to develop these destinations further.

Initiating the five priority destinations is done to achieve further economic growth through foreign exchange inflow and investment in the tourism businesses. Government efforts are fruitful as the Indonesian tourism industry has recently experienced rapid growth. The development is not only measured through the number of tourists or the value of investments made into the industry.

The government aims to continue such growth by incorporating digital technology into the industry. A technology-friendly destination and accommodation are more appealing to investors. This is also done to cater to millennial tourists, who make up 50% of the tourists that come to Indonesia.

Developing The Future of Indonesia’s Tourism Industry

The Indonesian Ministry of Tourism has also constructed multiple plans to recover from the COVID-19 pandemic to develop the tourism industry. One of the most concrete plans is accelerating vaccination rates and vaccine drives.

The vaccine rollout has been unfolding relatively well, with over 50% of the vaccines already distributed to the general public. The central government has administered over six million doses and placed hospitality and frontline service employees as a priority to receive those vaccines.

The tourism sector accounted for 15% of Indonesia’s Gross Domestic Product in 2019. The industry has seen exponential growth, and the number continues to grow each year. To further enhance economic growth, Indonesia also plans on increasing the number of foreign arrivals.

For increasing the number of foreign travelers, the Indonesian government cannot solely rely on Bali. Thereby the government has also been focused on developing other parts of the nation to be equally profitable, if not more, than Bali.

Bintan’s Trikora Coast: A New Opportunity Emerged

One of the places which have received significant attention from the government is the Trikora Coast, located in the Riau Islands. The island is dotted with villages and traditional fishermen, making the stay even more special. There are a number of beaches located within the Trikora area, each with its charm and character.

The Tourism and Creative Economy Ministry is currently working alongside the Riau Islands provincial government and the Bintan district government to develop the coast into a prominent tourist destination.

This is done not only to increase the state’s Gross Domestic Product but also to promote the economy of the locals living in the area. The target of this destination is not only foreigners entering Indonesia. It also targets domestic tourists looking to escape from the urban environment.

Opportunities and Challenges in Developing Bintan Tourism Industry

Bintan is strategically located just a ferry ride away from Singapore and Malaysia. Bintan is also known for its natural beauty and its white-sand coastline that stretches along the island. The island is filled with luxurious resorts and manicured lawns. It is also known as Indonesia’s most historical city, with ancient, vibrant markets located on stilts in the sea.

Bintan primarily targets people living in or visiting Singapore. This allows Bintan to profit from international traffic through Changi airport. Despite its various benefits, the growth undergone by this district has been relatively slow. There is a dire need for a substantial cash injection into the economy to allow Bintan to compete against other destinations like Bali.

To gain a competitive advantage over other tourism destinations in Indonesia, Julia Suryakusuma recommends that Bintan markets itself as an ecotourism destination and focuses on the local culture distinct from different spots in Indonesia. She further elucidates how the region should capitalize on the indigenous community of Orang Laut in Tanjung Berakit to attract tourists and make Bintan a tourist hotspot.

Ecotourism is a segment of the tourism industry that allows for great success. There are significant hindrances often faced in balancing the interest of locals and getting them to participate in such an activity. However, it is to be noted that such actions would also positively impact the welfare and prosperity of locals living within the region.

To further ease the process, InCorp provides services regarding Company Registration, Business Licensing, and Immigration Services for companies looking to derive benefits from the up-and-coming tourist region of Bintan.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

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Frequent Asked Questions

As their names suggest, the main differences between the three business kinds in Indonesia lie in the businesses and the purpose of their incorporation. Local company owners (PT) must be Indonesian citizens, as even 1 percent of foreign ownership is not allowed. This type of company is not limited to entering any business field, and restrictions on incorporation are not so tight. On the contrary, a foreign-owned company (PT PMA) is open to international investors, but the maximal percentage of foreign shares differs in various business sectors. Contact InCorp to get the most updated information on the Negative Investment List. International investors tend to open representative offices as a first step to understanding the Indonesian market before setting up a limited liability company. This type is used for marketing and promotion activities and needs the right to sell directly and receive income.

Yes, this mainly applies to import and export businesses. Instead of establishing a company, you can use an under-name import service, an importer of record.

It should take between 30 to 45 days.

There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.

Yes, you must apply for it to be able to issue work permits for your foreign employees. This permanent business license is also a prerequisite for the applications for other business licenses and import licenses.